Amazon opens logistics to all businesses
Brian opened with major news: Amazon officially announced its Supply Chain Services, opening its logistics network to businesses outside the traditional marketplace ecosystem. The announcement follows the AWS playbook of building infrastructure for internal needs, then releasing it to the wider market.
The scope is comprehensive. Supply Chain Services covers global logistics from sourcing in Asia, ocean freight, staging warehouses in the US through Amazon Warehousing Distribution, Fulfillment by Amazon for storage and picking, multi-channel fulfillment for shipping products sold outside Amazon, and Amazon Shipping for last-mile delivery.
Amazon continues to reinvent old businesses. They keep developing things for their vertically integrated business, and when you control from top to bottom, FedEx and UPS are just contractors moving stuff around.
Andy Hoar, Master B2B
FedEx stock dropped on the news. Amazon Shipping positions the company as a direct competitor for shipping services, with cost advantages from vertical integration that traditional carriers cannot easily match.
The true size of Amazon B2B
Andy raised the persistent question of Amazon’s actual B2B revenue. The last official number released was $35 billion for Amazon Business. The hosts argued the real figure is likely $100 billion to $200 billion or more.
The gap exists because many B2B purchases happen through amazon.com rather than Amazon Business. Companies and their employees buy B2B products without going through the dedicated business portal. Amazon releases official Amazon Business numbers infrequently, and the hosts suggested the undercount may be intentional.
If you took all of the Amazon B2B business, independent of where it is, it’s hundreds of billions of dollars.
Andy Hoar, Master B2B
Rural expansion and food service
Two additional Amazon announcements added context. A $4 billion initiative will expand Amazon logistics to rural areas, opening B2B markets that traditional distribution has underserved. And Amazon Business now includes all grocery and food products, positioning Amazon to compete in food service distribution.
Brian noted that over 100,000 restaurants already buy through Amazon Business. The addition of grocery and food means Amazon can serve a larger share of restaurant and hospitality purchasing needs.
Report from Chicago
The hosts shifted to insights from a recent B2B e-commerce event in Chicago. The conversation centered on what practitioners are prioritizing and the challenges they face.
Amazon was a recurring topic. Companies are grappling with whether to compete, coexist, or leverage Amazon’s infrastructure. The Supply Chain Services announcement intensified those conversations. Some see opportunity in Amazon’s logistics capabilities. Others see a competitor gaining advantages that become harder to counter.
Report from Manchester
Brian shared observations from an event in Manchester, where European B2B practitioners gathered. Similar themes emerged despite geographic differences. Digital transformation remains a work in progress for most companies. Organizational change is harder than technology deployment. And the gap between B2B digital capabilities and B2C expectations continues to drive investment.
What this means for B2B practitioners
The Amazon announcements require strategic response. Companies should evaluate whether Amazon’s logistics services could reduce costs or improve capabilities. They should also consider competitive implications if Amazon gains further share of B2B fulfillment. The rural expansion and food service additions show Amazon continuing to expand addressable markets. The question for practitioners is how to position in a landscape where Amazon’s role keeps growing.